Which of the following statements concerning the use of life insurance as an incidental benefit provided by a qualified retirement plan is $($are$)$ correct?

The premiums paid for the life insurance policy within the qualified plan are taxable to the participant at the time of payment.

Under the $25$ percent test, if term insurance or universal life is involved, the aggregate premiums paid for the policy cannot exceed $25$ percent of the employer's aggregate contributions to the participant's account. If a whole life policy other than universal life is used, however, the aggregate premiums paid for the whole life policy cannot exceed $50$ percent of the employer's aggregate contributions to the participant's account.

$1$ only.

$2$ only.

Both $1$ and $2.$

Neither $1$ nor $2.$